The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-05-18
The Railway Magnate Be-.
comes Badly Worried.
HIS STATEMENT YESTERDAY.
His Connection With the Union PSI
eihc-The Pool Agreement-Tha
Missouri Pacikc-Gsneral News.
jay Gould on the Stand /.


the stand. Ponder went over the old
story of the credit mobilier, and took
occasion to vindicste Cakes Ames, say
Ing he was an honorable man, and was
killed by infamous stories told con
corning him. He attempted to show
the connection of Blaine with the
credit mobilier. He said that when
Tom Scott was elected president of the
Union Pacific, Scott told witness that.
he had eighty two bonds which be-
ionged to Blaine, which the Union
Pacific would have to pay.
/ Jay Gould was next placed on the
stand and gave at length the history of
his connection with the Union Pacific.
NEW YoRK. May lin the Pacific
Railway Investigation. to day, the we'll
| known broker John ondier was on the.
| stand. Ponder went over The old story
OF the Credit Mobiiier and took occasion
to vindicate Oakef Ames, saying he was
an honorable man, and was killed by
the infamous stories told CONCERNING
him. Ponder attempted to showj
TIE CONNECTION OF BLAINE
With the Credit Mobilier. He said
that when Tom Scott was elected
president of the Union Pacific, Scott
| told witness that he had eighty-two
bonds which belonged to Blaine, which
the Union Pacific would have to pay.
Jay Gould was next placed on the
stand, and told at length the story of
his connection with the Union Pacific.
Gould said his books containing the
accounts of all the transactions were at
the service of the commission. When
the pool agreement of 1878 was ex-
hiblted, he recalled the facts
OF its existence, and acknowI-
edged signing for over $1,000, 600
securities. His books would show what
he paid for them. They were entered
at 30. The only way he saw out of the
difficulty was to take mass of the se-
curities in one mans hands aud issue
consolidated mortgage bonds ss pre-
llminary step to placing the property on
its feet He agreed to accept 30 for his
part OF the securities. A good many
thought that price was too low. I'm
stamped bonds were better lien than
stamped. and their value was fixed at
| 90. 1t was soon demonstrated that
THIS POOL AGREEMENT
would not carry, and the consolidated
mortgage was determined upon between
April, 1878, and May, 1879. The object
of the consolidated mortgage was to
consolidate the heterogeneous mass Of
securities under one uniform security.
Most of the bonds were held by Ames
and himself. He thought 30 cents was
a fair price for his 81 900 900 stamped
income bonds, and that was the price
he took for all he had in the pool. at
the time of the consolidation he owned
40 800 shares of Union Pacific, worth
9311s, and q COO worth SO. Later it was
IMMENSELY VALUABLE PROPERTY,
but had been badly managed. He
presumed the reason he bought the in
come bonds was because they were on
the eastern end of the road-its valuable
portion. He bought Of Amsterdam
people, and paid for them 500, 900 worth
of Denver Pacific bonds. He believed
the price was "a. at which price he sold
them to Mr.. Sage, the roads east
from Omaha forcing Union Pacific
stock. a little more than q year later
he was clear on the books of the Union
Pacific railroads. There was a law in
Massachusetts that allowed anybody
who had any claim against q railroad to
attach It's stock. He put it out of his
name because the claim had been
trumped up. and his stock, TO be at
Tackled and destroyed as collateral, was
retransferred to him after the consoEd-
alton.
Gould says on the Supreme Courts,
decision on the Thurman bill, he made
up his mind that he better have several
thousand stockholders. It was for his
interest to put the stock out, as the
consolidation had advanced its value
f2o. While General Dodge and Sol
Humphreys were engaged in ascertain
ing the proper basis for consolidation ~
witness
PURCHASED THE MISSOURI PACIFIC
in order to protect the Kansas Pacific
and became averse to the consolidation.
He offered his check for s., 900. 0O0I
they would not ask him to consent 70
this consolidation. They kept witness
in his Office until he signed paper
agreeing to carry the consolidation
through. He thought this paper
was now in Boston. That he was 10 be
made director in the new company was
determined upon at the time he signed
the paper. 1t was desirable to put IN
Denver Pacific stock. OF which he held
81 GOO. 600 worth, which he bought at
lOc. Witness told Holmes if ne could
get an order of the court releasing IL,
be would put it in Al more than it was
worih-S5O0 600. The trustees were
TO get nothing of this stock had not
been released, for the bonds would have
been foreclosed and
THE STOCK COULD NOT so
on into consolidation What witness
did in the matter was the best possible
thing for the trust, and te was wiling
to stand by his action. In answer to
Commissioner Andersons searching
questions regarding the handling OF the
Denver Pacific stock trust, Gould re-
pied vigorously, gesticulatlng violently
He seemed greatly 1ncensed at the i'm
putation OF a dishonorable deal between
sage and himself in reference to this.
trust. Adjourned.